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EQS-News: AT&S Austria Technologie & Systemtechnik AG: AT&S successfully starts into a challenging year
EQS-News: AT&S Austria Technologie & Systemtechnik AG / Key word(s):
Quarterly / Interim Statement
AT&S Austria Technologie & Systemtechnik AG: AT&S successfully starts into
a challenging year
01.08.2023 / 07:01 CET/CEST
The issuer is solely responsible for the content of this announcement.
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AT&S successfully starts into a challenging year
• Revenue for the first quarter of 2023/24 increases by 20% to
€ 362 million compared to Q4 2022/23, but is 28% lower than in Q1
2022/23 (Q1 2022/23: € 503 million; Q4 2022/23: € 302 million)
• Adjusted EBITDA of € 92 million corresponds to a margin of 25.5%
• Guidance for FY 2023/24 and 2026/27 confirmed
• New reporting structure since April 1, 2023
Leoben – In a challenging market environment, AT&S had a solid start to
the new financial year 2023/24. “We managed to stabilise the operating
development in a persistently difficult market environment with forecasts
changing almost daily. We owe this positive situation in particular to our
efficiency and cost optimisation programmes, which were introduced in a
timely manner and are taking effect faster than planned. Coupled with our
continuous strength in innovation, this makes us a reliable partner for
existing and new customers alike,” CEO Andreas Gerstenmayer outlines the
company’s perspective. “We are convinced that AT&S is well-positioned in
market segments benefitting substantially from digitalisation and
electrification. Therefore, we continue to push our projects in Kulim and
Leoben and are very satisfied with the progress made,” says Gerstenmayer.
As of April 1, 2023, AT&S has reorganised its “Mobile Devices &
Substrates” and “Automotive, Industrial & Medical” segments. The company’s
new structure comprises the business units “Electronics Solutions” and
“Microelectronics”. Reporting has been adapted accordingly. “Electronics
Solutions” bundles the printed circuit board and module activities across
the Group, while “Microelectronics” focuses on IC substrates.
In comparison with the strong prior-year quarter, consolidated revenue
declined by 28% to € 362 million in the first quarter of 2023/24 (PY:
€ 503 million). Adjusted for currency effects, consolidated revenue also
fell by 28%. This decrease was primarily driven by the cooling demand
dynamics, in particular for IC substrates, which AT&S was already faced
with in the second half of the previous year. In the Electronics Solutions
segment, the decline compared to the prior-year quarter was caused by the
absence of a new model series of mobile phones.
EBITDA declined by 45% from € 137 million to € 75 million. The decline in
earnings is primarily attributable to the decrease in consolidated
revenue. In order to counter effects such as price pressure and inflation,
which result from the currently difficult market situation, AT&S already
initiated comprehensive cost optimisation and efficiency programmes in the
past financial year. These programmes already made a higher contribution
in the first quarter of the financial year 2023/24 than originally
planned. Compared with the financial year 2022/23, cost reductions
totalling € 440 million are expected for the following two years.
Currency fluctuations of the US dollar and the Chinese renminbi had a
positive influence of € 15 million on earnings. In addition to lower
demand, the start-up costs in Kulim, Malaysia, and Leoben, Austria, had a
negative impact on earnings. Adjusted for start-up costs, EBITDA amounted
to € 92 million (PY: € 145 million), which corresponds to a decrease by
36%.
The EBITDA margin amounted to 20.7% (EBITDA margin adjusted for start-up
costs: 25.5%), thus falling short of the prior-year level of 27.3% (EBITDA
margin adjusted for start-up costs: 28.8%). Depreciation and amortisation
increased by € 2 million to € 66 million (18% of revenue) due to additions
to assets and technology upgrades. EBIT fell from € 73 million to
€ 8 million. The EBIT margin amounted to 2.3% (PY: 14.5%). Finance costs –
net declined from € 34 million in the previous year to € -5 million
primarily due to a change in currency effects on the high level of cash
and cash equivalents. Profit for the period decreased by € 96 million to
€ -2 million, leading to a decline in earnings per share by € 2.53 from
€ 2.35 to € -0.18.
The financial position as of June 30, 2023 is still characterised by
investing activities and the associated financing activities. Despite
additions to assets, total assets decreased to € 4,004 million, down 4%
compared to the balance sheet date March 31, 2023, due to the repayment of
financing. As a result of the high investment volume and due to negative
foreign exchange effects in other comprehensive income (OCI), the equity
ratio declined by 2.2 percentage points to 25.6%.
Cash and cash equivalents declined to € 630 million (March 31, 2023:
€ 792 million). In addition, AT&S has unused credit lines of € 728 million
to secure the financing of the future investment programme and short-term
repayments.
Key figures
in € million Q1 2023/24 Q1 2022/23 Change in %
Revenue 362 503 -28%
EBITDA 75 137 -45%
EBITDA adjusted^1) 92 145 -36%
EBITDA margin (in %) 20,7 27,3 –
EBITDA margin adjusted (in %)^1) 25,5 28,8 –
EBIT 8 73 -88%
EBIT adjusted^1) 27 81 -67%
EBIT margin (in %) 2.3 14.5 –
EBIT margin adjusted (in %)^1) 7.3 16.0 –
Profit for the period -2 96 –
ROCE (in %)^1) 0.5 16.4 –
Net CAPEX 272 276 -1%
Cash flow from operating activities 229 206 +11%
Earnings per share (in €) -0.18 2.35 –
Number of employees^2) 14,111 14,891 -5%
^1) Adjusted for start-up costs
^2) Incl. leased personnel, average. As at June 30, 2023: 14,165
Outlook 2023/24
Depending on the market development, AT&S will continue to push ahead the
investment project in Kulim and the expansion of the site in Leoben and
implement technology upgrades at other locations in the financial year
2023/24. In view of the highly volatile environment, the ongoing
investment projects will be reviewed at frequent intervals and adapted to
the respective current situation if required.
The expectations for AT&S’s segments are currently as follows: In the
markets for IC substrates, demand for notebooks in 2023 is expected to be
lower than in 2022. The negative impact on the supplier chain has been
aggravated by high inventory levels. According to current forecasts, this
affected especially the first quarter of 2023/24 (i.e., the second
calendar quarter of 2023), with a slight recovery of demand anticipated
towards the end of the calendar year. Nevertheless, the prior-year level
will not be reached again until the end of the year 2024. Demand for IC
substrates for servers will benefit from the technology shift towards
heterogeneous integration[1][1] in the medium term.
In the area of mobile devices, the 5G mobile communication standard as
well as the module printed circuit board business will remain positive
drivers. In the Automotive segment, the semiconductor shortage has eased
and the growth trend is intensifying as the electronic content per vehicle
continues to increase. In the Industrial and Medical segments, the market
is expected to stagnate or even decline during the current year.
As part of the strategic projects, the management is planning investments
totalling up € 800 million for the financial year 2023/24 depending on the
market environment and progress of projects. Roughly € 100 million are
budgeted for basic investments. Planned investments of approximately € 200
million in the financial year 2022/23 have been postponed to the financial
year 2023/24. As a result, the planned investment volume currently totals
up to € 1.1 billion.
AT&S expects the deterioration of the market environment in the second
half of 2022/23 to continue initially. High inflation rates, rising
interest rates, recession risks as well as geopolitical developments
continue to represent additional elements of uncertainty for the end
markets.
In this challenging environment, AT&S expects a gradual improvement in
revenue in the course of the year, which will result in annual revenue
between € 1.7 and 1.9 billion. Not including effects from the start-up of
the new production capacities in Kulim and Leoben totalling approximately
€ 100 million, the adjusted EBITDA margin is expected to range between 25
and 29%.
Guidance 2026/27
The progress of the production capacity expansion in Kulim and the
expansion of the site in Leoben is still positive despite the challenging
global economic situation. The management is convinced that the major
trends – digitalisation and electrification – are intact. Therefore, AT&S
assumes that revenue of approximately € 3.5 billion will be generated in
the financial year 2026/27 and expects an EBITDA margin in the range from
27 to 32%. The management monitors the currently tense geopolitical
situation very carefully in order to be able to respond to developments at
any time and to make strategic adaptations. With the projects in Kulim and
Leoben, which were adopted in 2021, the company proved its vision and took
an important step towards diversifying its value added structure.
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft – Advanced
Technologies & Solutions
AT&S is a globally leading manufacturer of high-end printed circuit boards
and IC substrates. AT&S industrialises leading-edge technologies for its
core business segments IC substrates, Mobile Devices, Automotive &
Aerospace, Industrial and Medical. AT&S has a global presence with
production sites in Austria (Leoben, Fehring) and plants in India
(Nanjangud), China (Shanghai, Chongqing) and Korea (Ansan near Seoul). A
new high-end production site for IC substrates is currently being
established in Kulim, Malaysia. And in Leoben, a unique European
competence centre with connected series production for IC substrate
technologies is being built right now. The company employs more than
14,000 people. For further information please visit [2]www.ats.net
Press contact:
Gerald Reischl, Vice President Corporate Communications
Tel: +43 3842 200 4252; Mobile: +43 664 8859 2452; [3][email protected]
Investor Relations contact:
Philipp Gebhardt, Senior Director Investor Relations
Tel: +43 3842 200 2274; Mobile: +43 664 7800 2274; [4][email protected]
AT & S Austria Technologie & Systemtechnik Aktiengesellschaft
Fabriksgasse 13
8700 Leoben / Austria
[5]www.ats.net
[6]^[1] Heterogeneous integration means that the different functionalities
of a single microchip are split up into chiplets, which reduces costs and
increases performance. However, this requires significantly larger and
more complex IC substrates to ensure the connection between the individual
chiplets.
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01.08.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: AT&S Austria Technologie & Systemtechnik AG
Fabriksgasse 13
8700 Leoben
Austria
Phone: +43 (1) 3842200-0
E-mail: [email protected]
Internet: www.ats.net
ISIN: AT0000969985, AT0000A09S02
WKN: 922230
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Dusseldorf, Frankfurt,
Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange;
Vienna Stock Exchange (Official Market)
EQS News ID: 1692497
End of News EQS News Service
1692497 01.08.2023 CET/CEST
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